Boy o’ boy, it is a dog-eat-dog world out there in the real estate market right now. Buying a home is tougher than ever! You really need to know the tricks of the trade and have your ducks in a row in order to get the home of your dreams, or any home for that matter.
Here is an essential checklist to get you started!
Hire 616 Realty
This isn’t a shameless promotion, this is a fact. You need a broker that prides itself on integrity, hard work, proficiency, and relationship. The team at 616 Realty wants to see you happy; they want you to return when you do your next real estate transaction. For Scot Kellogg and his team, real estate is less about money and more about family. So rather than pick a broker who is all about financial gain, join a family, the 616 family.
Select an agent
Choosing the right agent for you is essential. Make sure he/she is someone that you click with and feel like you can have open and honest dialogue. Having an agent that you feel like you can call in the middle of the night is a good test! Things are crazy right now, so you need a go-getter, “i” dotter, educator, and negotiator!
Get prepared to be decisive
If it feels like a place that you can see yourself making dinner in and curling up on the couch for years to come, put in an offer! You have to be ready to pull the trigger quickly in today’s market. So, make a list of what you must have (number of bedrooms, bathrooms, location), and the things you would like but are willing to compromise on.
Be ready to compromise
You will not find the “perfect” house. Buying a home is about compromise. It should be more about a feeling as well as a solid investment than about having the right room design or wallpaper. A majority of buyers will not find the absolute perfect home, so think about what you are willing to give up and what you aren’t.
Get ahold of cash
We aren’t talking about robbing a bank, but we are talking about having cash on hand to sweeten the deal. Many sellers in Kent County are getting 10-50 offers on their homes, and so anything you can do to put a cherry on top of your offer, is optimal! You need earnest money to put down with the contract, a good chunk for a down payment, and even some cash to pay sellers’ closing costs.
Get pre-approved from a local lender
You have to be pre-approved and having approval from a local lender can help seal the contract with you and the seller. A local lender gives sellers more confidence that the loan isn’t going to fall through at the last moment.
Be prepared for an appraisal gap
If your appraisal (property value) comes in lower than the contracted/asking price then there may be an appraisal gap. Your lender is only going to give you what the property appraises for, so you will have to, again, have some cash handy to pay for that gap or potentially lose the property to another buyer.
Inspection or No
Some home buyers are purchasing properties with no inspection in order to get their offer selected by the seller. This is risky business for sure. Talk to your real estate agent and let them guide you on how to navigate this tricky proposition.
Because it is so competitive, buying a home can be really stressful right now. Make sure you take care of yourself. Do some meditation and yoga, get out in nature, and love on your significant other (especially if he/she is the fury kind).
It’s a very competitive market for buyers. You have to be prepared, have all the tools, and get all the training you need to make an informed and quick decision. Let 616 Realty be your coach, your advocate, and your teammate!